News and developments
Korea Introduces Anti-Circumvention System in Customs Act
the Korean Government introduced grounds for the anti-dumping investigation authorities to investigate circumvention dumping. The amendments related to circumvention dumping will take effect from January 1, 2025.
Circumvention dumping refers to the avoidance of anti-dumping duties through minor alterations to the categories of goods subject to such duties, or through assembly in a third country. As this type of behavior can neutralize the effectiveness of anti-dumping duties, the World Trade Organization (the “WTO”) discussed the concept of circumvention in its anti-dumping agreements during the Uruguay Round negotiations and the Doha Development Agenda (the “DDA”) negotiations beginning in 2001. However, ultimately, the anti-dumping duty policy was not introduced into the WTO rules.
As a result of this absence in regulation by the WTO, the US, EU and Australia, among others, have developed their own anti-circumvention systems to sanction circumvention dumping. There had also been calls for Korea to take action against circumvention dumping, and the Korean Government has introduced anti-circumvention policies in response.
- Definition and Types of Circumvention Dumping
- Procedure for Dumping Investigation
- Imposition of Anti-Dumping Duties